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14 October 2015
Positive investor reaction to the Hargreaves Lansdown (HL.) Q1 trading statement has helped its shares break out to 18-month highs, bucking today’s UK Index ’s losses and leading a select few gainers north. While Q1 assets under management (AUM) may have fallen, this is understandable after such a volatile summer and market rout, and they are only down slightly (-1%). The small decline is also easily offset by £1.4bn in new business inflows (+47%) as 24,000 investors either outright bullish or put off by poor fund performance decide to take matters into their own hands. This counters market weakness and keeps AUM both stable and well above the level reported this time last year (+16%).
The recent flood of interest (120,000 sign-ups) in next year’s Lloyds share offer is also seeing the Bulls ‘banking’ on this helping out over coming quarters, hopes high that the broker will get a boost to profits similar to than seen with the Royal Mail sell-off two years ago. Bulls eyeing early 2014 all-time highs of 1580p.
Mike van Dulken, Head of Research
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